RESULTS: Randstad Q1 results steady
Fri, 27 Apr 2012
International recruitment group Randstad posted revenues of €4,152.4m (£3,385m) in Q1, a 12% change on the same period in 2011, and gross profit also rose by 12% to €748.2m.
However, the company explains that the rise in revenues represented flat (0%) organic growth per working day – a measure “calculated excluding the impact of currencies, acquisitions, disposals and reclassifications”.
Across the different geographical regions of the business, the UK saw the single largest decline in EBITA (earnings before interest, tax and amortisation expenses). Group wide, EBITA fell from €108.7m to €104m.
Divisionally, the firms in-house business saw 21% rise in EBITA, while the professionals market saw more modest growth of 3% and staffing went down 10%
Geographical revenue and EBITA, and quarter-on-quarter change is shown below:
(Change is calculated on an organic basis, as outlined above)
North America: €957.3m revenue (up 9% on Q1 2011), €22.8m EBITA (up 40% on Q1 2011)
France: €741.6m (down 3%), €14.6m (down 7%)
Netherlands: €688.2m (down 1%), €39.1m (up 1%)
Germany: €461.9m (up 5%), €20.9m (down 19%)
Belgium and Luxembourg: €320.7m (down 4%), €13.2m (down 6%)
UK: €198m (down 7%), €0.8m (down 69%)
Iberia: €192.1m (down 7%), €2.9 (down 19%)
Other European countries: €210.4m (down 1%), €2.7m (down 41%)
Rest of the World: €382.2m (up 7%), €6.2m (up 26%)
In the UK division, professional staffing “was gradually strengthening, led by engineering and finance, predominantly through temporary staffing”. Demand in the education business was “stable”, while revenue at the in-house business was 10% lower than Q1 2011. Permanent fees were 19% below the same period last year.
A statement from the company notes: “We have experienced normal seasonal patterns across most European countries, with the exception of Germany, where we witnessed a rather flat development. Growth in perm fees remained challenging in the UK and Australia, while we achieved good growth in other regions. All these trends have continued into April.”
Randstad chief executive Ben Noteboom says: “Less restrictive European regulation in Italy and Belgium should benefit job markets progressively, although there is union resistance in several countries.
“We remain focused on profitable marketshare gains, relying on the quality and dedication of our people in the field, coupled with our strong concepts and execution.”